NMLS
Latest uploads at NMLS. Looking for notes at NMLS? We have lots of notes, study guides and study notes available for your school.
-
1093
- 0
-
73
All courses for NMLS
Latest notes & summaries NMLS
When ordering an appraisal, it is illegal to... - ANSWER-Request that the appraiser return a 
minimum or specific value. Mortgage professionals are permitted to communicate their own or 
the borrower's opinion when ordering an appraisal; however, requesting a specific or minimum 
value is considered improper influence of an appraiser and is a serious ethical and legal violation. 
Borrower credit is... - ANSWER-An amount paid by the lender to borrower for locking an 
interest rate at a rate high...
Primary Mortgage Market - ANSWER-Where credit institutions originate loans 
C. The maximum the rate can increase over the life of the loan - ANSWER-When an ARM has 
rate caps of 5/2/6, the 6 refers to what? 
A. The maximum rate increase at the initial adjustment 
B. The start rate for the loan 
C. The maximum the rate can increase over the life of the loan 
D. The rate maximum the rate can decrease over the life of the loan
What law deals with credit, APR & Advertising of consumer loans? - correct answer TILA 
Which regulation prohibits kickbacks? - correct answer RESPA 
Which regulations require the lender to cancel PMI when the loan reaches 78% LTV? - correct 
answer HPA-Homeowners Protection Act 
Which Regulation prohibits fee splitting? - correct answer RESPA
If a borrow is on the DO NOT CALL LIST and makes an inquiry about doing business with you 
in regards to a loan, when does right to contact them expire? 
A. 1 month 
B. 2 months 
C. 3 months 
D. 4 months correct answers C. 3 months 
An established business relationship with a company also will be created if you make an inquiry 
to the company, or submit an application to it. This kind of established business relationship 
exists for three months after the inquiry or application. During this time...
Which law regulates the activities of consumer reporting agencies and users of consumer credit 
reports? correct answers FCRA 
Which agency manages the National Do Not Call Registry? correct answers Federal Trade 
Commission 
Which act led to the Nationwide Mortgage Licensing S
Primary goals of TILA - correct answer Protect consumers by disclosing the costs and terms of 
credit 
Create uniform standards for stating the cost of credit, thereby encouraging consumers to 
compare the costs of loans offered by different creditors 
Ensure that advertising for credit is truthful and not misleading 
Provide borrowers with the right to rescind certain types of mortgage transactions 
TILA's four conditions of credit - correct answer The credit is offered to consumers 
The offer...
CFPB - ANSWER-Consumer Financial Protection Bureau: Part of the Dodd-Frank Act passed in 
2010. It is focused on one goal: watching out for American consumers in the market for 
consumer financial products and services. This includes ensuring that consumers get the 
information they need to make the financial decisions they believe are best for themselves and 
their families by making sure prices are clear upfront, risks are visible, and that nothing is 
concealed in fine print. 
Responsibilitie...
RESPA - ANSWER-Real Estate Settlement Procedures Act; Allows borrowers to receive 
pertinent and timely disclosure regarding the nature and costs of the real estate settlement 
(closing) process; Enacted in 1974, the law was originally proposed to add more transparency to 
costs associated with certain real estate transactions and to eliminate abusive practices, such as 
kickbacks, which artificially increase the cost of settlement services. 
When RESPA must be obeyed - ANSWER-When a loan is a f...
Acceleration Clause correct answers Allows lenders to demand payment in full if the borrower 
defaults on the loan (can be construed as predatory lending) 
Alienation Clause (Due on Sale Clause) correct answers Says you must repay your mortgage if 
you sell your home to a new owner (loan is not assumable) 
Appraiser Independance Requirements replaced HVCC correct answers home valuation code of 
conduct
What must a borrower do to avoid having late payments reported to a credit bureau? correct 
answers Pay within 30 days of due date 
Max penalty if a borrower is required to use a specific title company or settlement agent? correct 
answers 3 times the fee 
What should not be over-weighted in an analysis of borrower repayment capacity? correct 
answers Credit score